When buying the dip doesn’t work: An analysis of the dot-com crash

Re:When buying the dip doesn’t work: An analysis of the dot-... by ars on Sunday May 08, 2022 @01:25AM (#31301574)

> Look at a chart of the S&P 500 from 1920 to 2008 and you'll notice something rather curious: the stock market has gone parabolic

That's because you are using a linear graph instead of a logarithmic graph.

If you have $100 and it double you have $200, if you have $10,000 and it doubles you have $20,000. Both of those are the same chance, but if you use a linear graph it looks parabolic.

Do yourself a favor and NEVER use a linear graph of the stockmarket.

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Re:When buying the dip doesn’t work: An analysis of the dot-... by tasuki on Sunday May 08, 2022 @03:57AM (#31302137)

> That's because you are using a linear graph instead of a logarithmic graph.

The macrotrends.net graph linked by fny is logarithmic (by default, though there's a "Log Scale" checkbox to turn it off). It's also inflation-adjusted by default, which I think is a little unfair.

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